After the spring selling season flopped, the housing market is finally heating up in the colder autumn months as sellers slash prices more aggressively.
While the typical individual discount remains $10,000, sellers are increasingly offering multiple reductions as tepid demand leaves homes on the market for longer, according to Zillow. As a result, the cumulative price cut in October hit $25,000, matching the largest discounts Zillow has ever recorded.
“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement released on Monday. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”
The most expensive housing markets have the largest median discounts by dollar value: San Jose ($70,900), Los Angeles ($61,000), San Francisco ($59,001), New York ($50,000) and San Diego ($50,000).
But when looking at discounts as a share of a home’s value, cities in other regions actually have better deals. For example, the typical markdown in Pittsburgh is $20,000—a fraction of the discount in the bigger markets—but it represents 9% of that metro area’s home value, according to Zillow.
